Selling Your Business?
Let Phil Wolfstein Guide You Through the Process. As your trusted Certified Business Broker, Phil guides business owners in California, through the process of selling their business.
Selling Tutorial
Deciding When to Sell
Your Business
Selling your business is a big decision, and timing is crucial. You have invested a significant amount of time, money, and effort into building your business, and it is essential to get the best value for all your hard work. Working with a professional business broker can help you decide the right time to sell and guide you through the entire process. As a business owner, you need to consider multiple factors when deciding to sell, such as the current market trends, competition, and your personal goals. You should also determine whether your business is profitable, has growth potential, and whether you have a succession plan in place. A professional business broker can provide you with the guidance and support you need to make informed decisions about selling your business. They can help you prepare your business for sale, determine its value, market it to potential buyers, and negotiate the best deal possible.
Taking the First Steps To Selling Your Business
Taking the first steps to sell your business can seem daunting, but it all starts with gathering and organizing the necessary information. This includes financial statements, tax returns, lease agreements, customer and supplier contracts, and employee agreements. Once you have all of this information, spend some time updating it and filling in any missing pieces. It's important to present this information in a neat and orderly format as if you were going to present it to a prospective buyer. However, it's not just about determining the selling price of your business. It's also important to consider the tax implications of a sale. The federal tax laws determine how much money you will be able to put in the bank, and how your business is legally formed can impact your tax status. Before even considering selling your business, it's crucial to discuss the tax implications with a tax advisor. You don't want to be in the middle of a transaction with a solid buyer only to realize that the tax implications will net you much less than you had anticipated.
Checklist of What You
Will Need
• Three years’ profit & loss statements and balance sheets • Federal Income Tax returns for the business • List of furniture, fixtures, and equipment • The lease and lease-related documents • A list of the loans against the business (amounts and payment schedule) • Copies of any equipment leases • A copy of the franchise agreement, if applicable • A list of current inventory, if applicable • The names of any outside advisors
Frequently Asked Questions About Selling Your Business
Selling a business can be a daunting task, and you may have a lot of questions about the process. Phil Wolstein is here to help. As an experienced business broker in Los Angeles, CA, I have helped many business owners successfully sell their businesses, and I am here to answer any questions you may have. In this FAQ section, I will address some of the most common questions I receive from sellers. Whether you are just starting to consider selling your business or are already in the process, I hope these answers will provide you with valuable insights and help you make informed decisions throughout the sale process.
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What is the first step in selling my business?The first step in selling your business is to prepare it for sale. This involves maximizing its efficiency, earning potential, structure, and presentation. You can consult with a Certified Business Broker to help you with the process.
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How long does it take to sell a business?The time it takes to sell a business depends on various factors, including the industry, the size of the business, and the market conditions. On average, it can take anywhere from 6 months to 1 year to sell a business.
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How do I find potential buyers for my business?A Certified Business Broker can help you identify potential buyers who are interested in your type of business. They have access to a network of buyers and can use a combination of online listings and targeted advertising to market your business.
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How do I determine the value of my business?The value of your business can be determined by calculating its earnings, assets, and liabilities. A Certified Business Broker can help you recast your profit and loss (P&L) to determine your true SDE (Seller’s discretionary earnings), which is a key factor in determining the value of your business.
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What is the role of a business broker in selling my business?A Business Broker can help you with every step of the selling process, from preparing your business for sale to negotiating the purchase agreement. They have the expertise and experience to ensure that you get the best value for your business and that the sale is structured in a tax-efficient manner.
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Can I sell my business on my own?" These 3 questions can help you answer yes or no more confidently:Do I have the skills and experience to sell my company on my own? For most owners, selling a business is a once-in-a-lifetime experience, and likely the largest transaction of our lives. Selling is a complex process with countless details and deadlines, and the buyer might be someone who buys businesses for a living, giving them a big upper hand unless you're also experienced. Do I have the contacts to find the right buyer? Professional brokers have hundreds of qualified and motivated buyers in their database and a network of professionals (attorneys, lenders, estimators, etc) who know how to get deals done. Do I have the time to sell my business and run it, too? Selling your company will take months between screening prospective buyers, responding to information during the diligence process, and finalizing negotiations. Most owners simply can’t manage the process themselves without taking focus away from their business. And if your business starts to lag or become less profitable, it will be worth less to a buyer, defeating the purpose of going it on your own.